This refers to the small amounts of cash kept on hand in a business.
Petty cash is usually used to pay for small purchases such as milk for employee’s refreshments, small items of postage, reimbursing employees for minor expenditure. Petty cash spend should still be accounted for, with receipts or similar evidence of spend; in the financial accounts it is often recorded as a single item rather than with detailed analysis.
Petty cash is a term normally found in financial accounting.
Explore our learning zone to discover more